Totalenergies Se · EURONEXT:TTE
Totalenergies — Investor Day (September 2023)
46 slides from Totalenergies's investor day presentation, Sep 28, 2023
Slide 1: More energy, less emissions, growing cash flow
More energy, less emissions, growing cash flow September 27, 2023
Slide 2: Table of contents
Table of contents 04 | Safety moment 25 | Growing Oil & Gas production and cash 05 | Safety: core value 26 | Oil: focused on project execution 27 | Top-tier pipeline of LNG projects 28 | Suriname: launching a profitable oil development 29 | Focusing on what we do best 07 | Strategy driven by demand
Slide 3: TotalEnergies' Executive Committee
TotalEnergies’ Executive Committee Chairman and Chief Executive Officer President, OneTech, People & Social Engagement President, Strategy & Sustainability President, Exploration & Production President, Gas, Renewables & Power Chief Financial Officer President, Refining & Chemicals President, Market
Slide 4: Safety moment
Safety moment Artificial Intelligence to improve safety in drilling operations Kick* Kick Kick risk 2015–2021: 19 kicks on operated risk level Gas conventional drilling operations Hydraulics Mechanics AI predictive model based on 25 years of drilling operations Gas out Monitoring of critical paramet
Slide 5: Safety: core value
Safety: core value Two pillars: occupational safety and prevention of major risk Total recordable injury rate versus peers Primary losses of containment* per million man-hours number of incidents 100 1,0 -50% in 5 years 50 0.67 Peers: BP, Chevron, ExxonMobil, Shell 0,5 2017 2018 2019 2020 2021 2022
Slide 6: Energy markets supported by the energy transition
Slide 7: Strategy driven by demand fundamentals
Strategy driven by demand fundamentals Oil demand growth linked to population growth Acceleration of innovation to substitute oil use Low-carbon liquids: biofuels / e-fuels LNG driving growth Back out coal and complement of intermittent aiming at higher living standards renewables leading to Low-car
Slide 8: Oil demand growing through the decade
Oil demand growing through the decade Global oil demand Mb/d 105 +1 Growing demand 100 +2 Above pre-Covid level in 2023 Growth to 2028+ led by emerging countries 95 Constrained supply OPEC+ policy 90 US shale discipline and productivity headwinds 85 Supportive conditions for prices over the short an
Slide 9: LNG market expected to remain tight until 2026–27
LNG market expected to remain tight until 2026–27 Global LNG supply & demand Mt Pre-FID 600 Growing demand +5% New European LNG demand competing with Asia CAGR 2023–30 Reactive to price and weather Under construction Constrained supply Demand Tight market over short to medium term, 400 high sensitiv
Slide 10: Positive outlook on power prices driven by growing demand and supply constraints
Positive outlook on power prices driven by growing demand and supply constraints Global power demand TWh Transport Agriculture +3% 30 000 CAGR Energy sector* Growing demand Driven by decarbonization and growing population Tensions on supply Industry 20 000 Ageing power infrastructure, permitting del
Slide 11: Strategy & Outlook
El Salvador, Chile
Slide 12: Two pillars: Oil & Gas + Integrated Power
Two pillars: Oil & Gas + Integrated Power Peer-leading profitability Oil & Gas Integrated Power and growth Return on Average Capital Employed Full-year 2022 % 30% 28% 20% 10% 0% Low cost, Top 3 global LNG Driving value Exxon Chevron Shell BP low emission integrated portfolio from integration Energy
Slide 13: Growing Oil & Gas production to meet demand in emerging countries
Growing Oil & Gas production to meet demand in emerging countries Predominantly driven by LNG SEC Production Mboe/d +2–3%/y 2,5 Qatar NFE/NFS 2,0 Papua LNG Gas Mozambique LNG Rio Grande LNG 1,5 1,0 Uganda Oil Mero 2-3-4 Angola Block 20 Anchor, Ballymore Suriname 0,5 Iraq 2023 2025 2028 Upstream Oil
Slide 14: Growth supported by rich portfolio of projects
Growth supported by rich portfolio of projects Oil > 20% IRR* at 60 $/b LNG > 15% IRR* at 8 $/Mbtu TTF GGIP (Ratawi) Rio Grande ECA LNG Ballymore Anchor NFE & NFS Suriname Block 58 Uganda NLNG T7 Mozambique Angola Block 20 Papua LNG Mero 2-3-4 Sépia 2 Atapu 2 Oil LNG under construction pre-FID * Wei
Slide 15: Exploration strategy paying off
Exploration strategy paying off Wood Mackenzie’s “Most Admired Explorer” 3 out of last 4 years Venus Nara Ofon OML 100 Block Krabdagu Ntokon 2912 Discovery well Sapakara-South Oil Block 58 Gas condensate OML 102 Block Gas 2913B Oil prospect Block 6 Block 8 20 km 20 km 20 km Suriname Nigeria Namibia
Slide 16: Producing Oil & Gas responsibly: low cost, low emission
Producing Oil & Gas responsibly: low cost, low emission Low cost Low emission Value over volume Operating costs(1) vs peers Scope 1+2(2) intensity Profitability assessment $/boe kgCO2e/boe 20 50 $/b environment and 15 < 13 kg/boe 100 $/t carbon price 10 2020 2024 2028 Investment criteria 10 Methane(
Slide 17: A global and integrated LNG player
A global and integrated LNG player Top US LNG exporter growing a competitive supply from 10 Mt/y to > 15 Mt/y Upstream LNG plants Trading Regas Customers equity & offtake & Shipping Access to low-cost supply Lower the breakeven Strong trading teams Access to premium physical Secure Long-Term of our
Slide 18: Integrated Power: building a future cash engine
Integrated Power: building a future cash engine CFFO* B$ Develop an integrated energy business model, not a utility model 5 >4 Building a cost-competitive portfolio of renewable and flexible assets 4 Strengthen renewables industrialization Utilizing fortress balance sheet to capture value through me
Slide 19: Focus on deregulated markets to leverage market volatility
Focus on deregulated markets to leverage market volatility Power Generation by geography O&G countries USA Brazil, Australia Europe > 70% in deregulated markets Key deregulated country O&G presence country Other presence Strategy & Outlook September 2023 – Strategy and O utlook | 19
Slide 20: Creating value through low-carbon molecules
Creating value through low-carbon molecules Profitably transitioning European refining assets Hydrogen La Mède, France SAF Decarbonizing European refining Growing market driven by EU mandate Leverage RFNBO* European mandate Leveraging competitive asset base Local projects and partnerships Conversion
Slide 21: Disciplined & sustainable capital investment strategy
Disciplined & sustainable capital investment strategy Integrated Power Maintenance Oil 5-year plan 2024-28 Low-carbon energies 16-18 B$/y Oil 14-18 B$/y 2 B$/y short-term Through cycles downward Capex Low-carbon molecules flexibility Maintenance Gas LNG & Gas New projects Strategy & Outlook Capex =
Slide 22: 2023: executing the strategy, delivering results
2023: executing the strategy, delivering results 2023 Highlights 2023 CFFO and allocation* B$ Oil Integrated Power Abu Dhabi Total Eren SARB / Umm Lulu 100% integration acquisition 30 Germany 9 Buybacks Suriname 3 GW offshore wind towards FID Oil sands, EU retail divestments 20 Gas Iraq 16-17 Capita
Slide 23: More energy, less emissions, growing cash flow
More energy, less emissions, growing cash flow Energy production Energy sales GHG emissions CFFO(3) PJ/d PJ/d B$ Low-carbon molecules Scope 1+2 from operated facilities 40 MtCO2e 20% Electricity Integrated +4%/y 40 Power 20 20 -40%(1) > 10 B$ 30 20% 20 50% Gas 2015 2030 40% 20 10 10 Lifecycle carbon
Slide 24: Oil & Gas
Deepsea Stavanger semi-submersible
Slide 25: Growing Oil & Gas production and cash
Growing Oil & Gas production and cash SEC Production Upstream O&G CFFO* Mboe/d B$ +2–3%/y > +3 B$ at same price deck** 2,5 2,0 Gas 20 1,5 1,0 10 Oil 0,5 2023 2028 2023 2028 * Upstream O&G: E&P + Integrated LNG. CFFO excluding working capital variation (excl. Russia). Oil & Gas September 2023 – Strat
Slide 26: Oil: focused on project execution
Oil: focused on project execution Global Oil projects merit curve Iraq Brazil Technical costs, $/boe GGIP (op.) Mero 2,3,4 Phased ramp-up from Mero-2 startup Q4-23 60 to 210 kb/d in 2027 Mero-3 & 4 by 2025 40 Production* Production* 75 kboe/d 80 kboe/d Anchor** Ballymore US GOM Uganda 20 Mero 2,3,4
Slide 27: Top-tier pipeline of LNG projects
Top-tier pipeline of LNG projects Best-in-class growth LNG projects merit curve Qatar US RGLNG $/mcf DES Asia, breakeven at 11% discount COD 2027 NFE & NFS 15 COD 2026–28 5.4 Mt/y offtake ~3.5 Mt/y 700 $/t LNG EPC* equity NFS ~650 $/t Mexico ECA LNG EPC* COD 2026 1.7 Mt/y offtake 10 500 $/t LNG EPC*
Slide 28: Suriname: launching a profitable oil development
Suriname: launching a profitable oil development Successful appraisal: ~700 Mb recoverable resources oil development 200 kb/d FPSO Targeting FID end-2024, first oil 2028 Strong economics with upside Access to 75% of APA’s cost oil for carry repayment (3 years at 60 $/b) Design allowing for high-IRR
Slide 29: Focusing on what we do best
Focusing on what we do best Low-cost portfolio that maximizes value Operational excellence Portfolio high-grading Low breakeven Maximize value from existing Canada divestment Pre-dividend organic cash breakeven assets safely and efficiently Focus on low-cost assets $/boe • 2023 entries (UAE, Iraq):
Slide 30: Producing Oil & Gas while slashing GHG emissions
Producing Oil & Gas while slashing GHG emissions Relentlessly fight emissions Deploy best available Innovate to substitute in existing assets technologies in new projects fossil fuels use Aiming for Zero Methane emissions Closed flare in all new projects Investment in e-Natural Gas AUSEA (drone-base
Slide 31: Integrated Power: Profitably building a future cash engine
TS TotalEnergies Integrated Power Profitably building a future cash engine
Slide 32: Integrated Power: objective ROACE 12%
Integrated Power: objective ROACE 12% Renewables Flexible Storage Trading Customers generation Capture volatility and Deliver clean firm power First quartile target CCGTs to complement Manage intermittency maximize asset value to large B2B Strengthen renewables renewable production to capture value:
Slide 33: Levers to reach our profitability target
Levers to reach our profitability target Focus growth on deregulated markets Renewables Flexible assets 20 TWh (2023) x4 to 5 in 2030 15 TWh (2023) x2 in 2030 Develop better Produce better Sell better Optimize portfolio Focus and scale Objective: 1st quartile in 30% Merchant Exposure Utilize fortres
Slide 34: Growing selectively and profitably in offshore wind
Growing selectively and profitably in offshore wind Germany award – 3 GW in two North Sea and Baltic Sea licenses Attractive German power market Low technical cost Strategic entry into dynamic German power market fitting our Integrated Power model Long-term leases: 25 +10 y, COD by 2030 • Mix of CPP
Slide 35: Selective strategy in regulated markets
Selective strategy in regulated markets Oil & Gas countries Leveraging multi-energy model to access Oil & Gas contracts Iraq, Libya Leveraging Oil & Gas position to access profitable electricity projects Angola, Qatar, Kazakhstan Contributing to transition of Oil & Gas countries Achieving high doubl
Slide 36: Electromobility: focused on our competitive advantages in Europe
Electromobility: focused on our competitive advantages in Europe Two key targeted markets: highways & city hubs and B2B segments HPC Highways & city hubs B2B Synergies between B2B sales and Integrated Power supply Leveraging existing presence Converting B2B track record in Europe to electromobility
Slide 37: Growing profitable Integrated Power business
Growing profitable Integrated Power business Electricity generation CFFO* Company share, TWh B$ 5 >4 100 4 80 +2 B$ 3 Renewables 60 2 ~2 40 1 1 20 Flexible generation 2022 2023 2025 2028 2022 2023 2025 2028 Net Cash Flow positive by 2028 Integrated Power * CFFO excluding working capital variation Se
Slide 38: Investing in TotalEnergies
Investing in TotalEnergies
Slide 39: Delivering cash flow growth supporting distribution growth
Delivering cash flow growth supporting distribution growth 2023–28 CFFO* CFFO growth 2023–28 B$ at same price deck** Upstream Oil & Gas +3 B$ 200 < 50 $/b Post-dividend breakeven Downstream & low-carbon molecules +1 B$ 150 > 100 B$ Integrated Power +2 B$ Free Cash Flow at 80 $/b Existing Dividend +6
Slide 40: Growing shareholders distribution to > 40% of cash flow
Growing shareholders distribution to > 40% of cash flow 2023+ Distribution payout* ~44% % 1.5 B$ distribution from Canada divestment included in buybacks 40% > 40% 37% 35% 30% 2021 2022 2023 2024+ 9 B$ buybacks in 2023 * Paid dividends + share buybacks, as % of CFFO excluding working capital variati
Slide 41: Bolstering our ESG leadership
Bolstering our ESG leadership Third-party ratings reinforcing TotalEnergies’ case for inclusion in ESG portfolios CMD 2022 CMD 2023 Ranking vs peers* A AA 2nd (tie) 30 28 1st Medium Risk Medium Risk B- B- 1st (tie) Prime Prime 60 65 n/a Advanced Advanced 70 74 1st A- A- 1st (tie) Investing in TotalE
Slide 42: More energy, less emissions, growing cash flow
More energy, less emissions, growing cash flow Cash flow growth, low breakeven portfolio and consistent cash allocation underpinning higher shareholder distributions Sustainable, Capex 14–18 B$/y Fortress Surplus shared growing dividend through cycles balance sheet through buybacks > 40% payout thro
Slide 43: Appendix
Appendix
Slide 44: Cash flow allocation
Cash flow allocation Targeting AA credit rating 2023 +7.25% 16-17 B$ 11% 9 B$ buybacks 2023 interim dividends vs 2022 5 B$ in Low-carbon Energies Gearing 1H23 Appendix September 2023 – Strategy and O utlook | 44
Slide 45: These adjustment items include: 1. Special items The terms “TotalEnergies”, “TotalEnergies company” and “Company”
These adjustment items include: 1. Special items The terms “TotalEnergies”, “TotalEnergies company” and “Company” in this document are used to designate Due to their unusual nature or particular significance, certain transactions qualifying as “special items” are excluded from the business segment T
Slide 46: For more information go to
Corporate Communications TotalEnergies SE 2, place Jean-Millier 92400 Courbevoie, France Tel.: +33 (0)1 47 44 45 46 Share capital: €6,030,629,587.50 Registered in Nanterre: RCS 542 051 180 For more information go to